Governance - a victim of crime?

Governance is an important part of a nation’s brand, particularly with regard to attracting foreign investment. The annual Ibrahim Index of African Governance, looked upon as a credible calibration by the international community, was released on Monday, when South Africa saw its ranking move down to 5^th place due to high levels of crime, despite high scores in public management and most other areas.

Mo Ibrahim foundation board director Mamphela Ramphele commented that, "South Africa is in the Top 10 in every other category... but [with crime] we are lounging down there with the Somalians of this day and Zimbabweans. It's not a pretty place." In fact, in the personal safety sub-category, South Africa was ranked 44^th – still above Cameroon, Nigeria, Chad, Mauritania, Zimbabwe, Sudan, the Democratic Republic of Congo and Somalia, but not exactly where the country wants to be.

Crime’s been a target area in South Africa for the last twelve months, given the country’s hosting of the FIFA World Cup amid global concerns about safety. So why the drop? Is the issue policing, poverty or politics? Ramphele identified the root of the problem in the "political culture" of countries: "In our country, South Africa, we have fantastic policies but the performance doesn't always match the policies.”

She draws a parallel between business and government. Activist shareholders keep businesses in line. What we need is citizens’ involvement to drive better governance. But for that you need citizens with the same interest and stake in their government as a shareholder does. In a country where 95% of the population don’t pay taxes, 95% of the population have no reason to fight for a system that makes better use of their money.

But what does the future hold for driving governance, and who are the leaders who are going to ‘up’ the calibrations and raise the rankings on a pan-African scale?

The Ibrahim Prize for Achievement in African Leadership was not awarded in 2010 for the second year running, with no candidate that promoted excellence in leadership. It will be interesting to see how initiatives like the African Leadership Network build a more cohesive community of leaders for the community that might raise the rankings and compete for the award.

Meanwhile, does South Africa forge ahead trying to tackle crime in an isolated manner, or will the country use this as a benchmark for treating the root cause of poor governance overall?

South Africa's Entrepreneurs

I went along to a book launch at GIBS last night, for “South Africa’s Greatest Entrepreneurs”, published by Nigerian author Moky Mokura.

The book profiles “22 of the most successful and dynamic business visionaries” who have changed the shape of South Africa in their time. The entrepreneurs featured are: Sol Kerzner, Alan Knott-Craig, Koos Bekker, Herman Mashaba, Mark Lamberti, Adrian Gore, Raymond Ackerman, Pam Golding, Nkhensani Nkosi, Jenna Clifford, Whitey Basson, Mark Shuttleworth, Donald Gordon, Eric Ellerine, Natie Kirsh, GT Ferreira, Robbie Brozin, Carrol Boyes, Brian Joffe, Gary Morolo, Ndaba Ntsele and Anant Singh.

GIBS clearly has entrepreneurialism at the centre of its foundation, being the brainchild of Professor Nick Binedell’s entrepreneurial spirit. Working in the technology space in particular, how to find, fund and facilitate entrepreneurs is an ongoing discussion. I don’t think everyone is cut out to be an entrepreneur, (which is a good thing, in my opinion), but I do agree it’s an essential part of driving a developing economy, building new foundations for future businesses.

On Thursday night it was mostly a collection of white, middle aged men who took to the podium to describe their experience of being an entrepreneur in South Africa, and with limited time, the insights were also a bit limited unfortunately. Aside from the usual rhetoric about working 24x7, the high chances of failure etc., it was sometimes hard to tell the difference between a successful entrepreneur and a successful business leader.

What was great to see was that Moky had persuaded the profiled entrepreneurs who attended the book launch to donate an hour of their time to mentor an aspiring entrepreneur. That’s the real resource – the direct and dedicated insight, which will be incredible for anyone who bids and wins for that time. I guess even the genuine entrepreneur can still do with advice and direction from experience!

With that in mind, what was missing for me was the younger generation of entrepreneurs, the up and coming. I know the book is a reference tool to those who have succeeded over the years, but I also think that their stories have been told before, albeit not in this form in a single place. For me it’s about trying to find the entrepreneur that you haven’t heard of yet, who may have a new experience, different advice, given the environment that today’s entrepreneurs are working in is completely different.

Having said that, a book dedicated to South African entrepreneurs does at least show (to the outside world, the doubters), that the country is producing top-class talent, has the history of success and a foundation of knowledge to build on.

I think we all still have something to learn from these entrepreneurial titans, but I’d be intrigued to see what a different collection of people and experiences the same book might produce in five years time.

The relationship between CSR and policy

I’m not going to get into the specifics of South Africa’s mining policy environment, but I read Frans Cronje’s opinion piece in Business Day, “Engaging the State” with interest – and found a surprising take on CSR – not something I’d expected to come across within the topic.

Bank of America Merrill Lynch has produced a report that looks at some of the challenges facing the metals and mining industry in SA, and how the policy environment made it difficult to try and split Anglo American into international and South African assets to unlock value.

Without getting into the ins and outs of mining rights and politics, Cronje, deputy CEO of the South African Institute of Race Relations, is making the point that the government should not be afraid to enter into dialogue with the private sector in these circumstances. So not to ignore or challenge reports that critique the system, but to welcome the views of an engaged private sector, given the common goal of setting South Africa onto a path of further, better socio-economic development.

What made me sit up was Cronje’s point that “The government would be wise to see the report as a refreshing example of true corporate social responsibility — so different from the cliched vegetable gardens or soup kitchens that have come to pass as corporate social responsibility for many companies.”

I don’t think that most company CSR policies come down to soup kitchens and vegetable gardens, there’s incredible work being done on a large scale, but his point that a business’ engagement with government on hard issues could be seen as CSR is an interesting one. For all the definitions of CSR, self-regulation, giving back and creating a positive impact, managing the impact of a business on society, policy is rarely included.

Should corporate social responsibility directly address and take actions to support or work towards policies that also aim to create a positive impact on the economy, as well as the community?

In many large organisations the CSR departments don’t even sit in the same building as the policy people. There are, however, businesses that have aligned the work they do within community to highlight problems and try to force governments to recognise where policy needs to change. The danger is extrapolating Cronje’s point too far, when business feels it can criticise and pressurise governments in the name of ‘Corporate Social Responsibility’ without fulfilling the actual social impact part.

Where there is a connection between CSR intentions and policy requirements, there is more impact and an opportunity for aligning economic and social agendas – if governments listen, of course.

Football Fever hits SA

With just 2 days until the opening ceremony, the excitement is literally a tangible phenomenon. Everywhere you turn there are flags, Makarapa hats (fashioned out of builders safety helmets) and of course, the vuvuzela.

Now, I feel that I have to take a moment - or more - to discuss the vuvuzela because, love it or hate it, it has become a South African icon, part of popular culture and for this FIFA World Cup 2010 at least, a symbol of the indomitable African spirit. Sitting in the stands last night watching Mozambique vs Portugal, this was very much in evidence. The call of the vuvuzela resonating around the stand was both a challenge and a celebration, a distraction and an encouragement....a paradox that I am sure is going cause much media furore over the coming weeks. With so many vuvuzelas being blown at once, it begged the question of what the collective noun might be. My pounding head (despite earplugs) suggested a ‘violation of vuvuzelas’ but my heart knows that it is really a ‘victory’.

A victory of vuvuzelas for a continent finally given the chance to show the international community that it can host a world-class FIFA tournament, a victory of vuvuzelas for a continent pulling together for the first time in a year of peace and security and finally, a victory of vuvuzelas for Africans everywhere as the world wakes up to our potential in sport, culture and as a growing economic force.

So bring on FIFA World Cup 2010! Africa is ready, her arms are open in welcome....come and join the fun.

South Africa sports - a brand in itself

I must be one of the last people in South Africa to see ‘Invictus’, Clint Eastwood’s film of the 1995 Rugby World Cup in recently post-Apartheid South Africa. As well as an incredible story, in which the Springboks came from underdogs to win in the final against the mighty All Blacks, it could also be seen as an observation on the power of PR.

Mandela had a deep, natural understanding of his audience, his ‘family’ as he puts it, and understood the power of sport to influence and unite a nation. Moreover, the incorporation of the Rugby World Cup into his drive for reconciliation would also deliver an intuitive and subtle fulfilment of the requirement to clearly brand this new nation on the international stage. Tourism, foreign investment, people and culture & heritage, are all core elements of a nation branding strategy and the Rugby World Cup, given its international prominence at a time when South Africa was looking for FDI, was a perfect vehicle.

Mandela ‘s belief in keeping the Springbok name and colours, something most associated with Apartheid, was brave and brilliant. Sending his ‘rugby troops’ into the townships to run rugby camps for kids who had never before touched a rugby ball, was what would now be called good CSR strategy, while inviting the press along, a PR coup. As Morgan Freeman, playing Mandela, states when footage of the team with the children appears on TV, those few seconds are worth a hundred speeches. A picture says a thousand words, and sport is emotive – with or without the Hollywood soundtrack.

Every business and organisation is trying to find the ultimate channel for its story, to change minds, gain followers, or to sell something. It’s no wonder so many big corporations choose sports sponsorship as a way to reach the masses. This year’s FIFA World Cup™ in South Africa has seen billions of dollars of sponsorship deals and advertising spend as companies try to make the most of the opportunity at home and abroad. One of the most interesting things about the 1995 Rugby World Cup as it plays out in Invictus is the absolute lack of money or large-scale expenditure – pure PR and branding through and through.

Foresight 2010

What do you think South Africa needs to do in 2010? (Aside from winning the World Cup).

That was the question that Judge Dennis Davis put to the panel at the GIBS annual “Foresight 2010” forum. A quick survey of the members of his jury presented a variety of bullish and bearish responses – as well as one too many “Pass” cards, and talk of creating rather than predicting the future. The optimists got cross-examined for being unrealistic, while the pessimists were lambasted for being vague.

To be fair, the Judge was right. For all the talk of needing values, accountability, active citizenship, public-private dialogue – what does that actually mean? When push came to shove, to state some concrete action that the government should do in 2010 nobody wanted to put their neck on the line. Which was – ironically – stated as part of the problem and why business avoided engaging in debate with government, by Brian Bruce, CEO, Murray & Roberts among others.

What we might agree on is that there needs to be a vision for South Africa. What I don’t agree with is that business and government should share one same vision. By their very natures they will diverge completely – their interests lie in different corners. Yes, there needs to be co-operation, whereby government facilitates business to reach its goal, but the friction between the two – and the role that citizens play across both – is what drives change, and hopefully progress.

Michael Jordaan, CEO, First National Bank, was one of the panellists who came back to the human resources that South Africa has – training and keeping talent. Without going into the debate around school and university education that they embarked upon, it is also a key theme emerging in the survey that africapractice is conducting of African businesses, opportunities and challenges for the year ahead.

Chief Rabbi Warren Goldstein took it one step further, talking about the importance of the human spirit, the need to have faith in people and their ability to deliver. However, he was also the one who addressed my question of what South Africa needs to do to improve the perception of the country abroad and attract foreign investment with a very swift and succinct response: “Crime”. How much faith does he have in the people committing the crime to stop, or the people set to stop it succeeding?

Wendy Luhabe, chancellor of the University of Johannesburg, had been the only one to reference the outside world (aside from mention of that old Global Economic Crisis, of course). What must foreign investors think of the lack of discourse and progress being made by the Government and Business Community in South Africa?
When push came to shove, and Judge Dennis insisted they give him an answer to what single step was needed, Bonang Mohale, chairman and VP, sales and operations, Shell, SA, said leadership, and repeated the old adage, "People get the leadership they deserve". I didn’t know that South Africa spends more per capita on education and healthcare than most countries in the world, but the results still point to failed leadership. Without government representation present, the panel represents some of the best business leadership the country has. If they can’t step up and take account for engaging government and civil society in the debate they talk about, then who can?

A thought provoking discussion, but one that brought up more questions than answers. Who will start the discourse? I can’t help thinking it will fall back to the media once again....

Things you might not know about Africa

The africapractice team had emails flying round in response to the question: What do people not know about Africa?

There are plenty of preconceptions and misconceptions about the continent, but here are a few of the facts and figures that came up last week:

• Seven countries in Africa account for more than fifty per cent of the population (Nigeria, Ethiopia, DRC, SA, Tanzania, Kenya, Sudan)
• Africa holds about 10% of the world's proven oil reserves
• There are up to 100 million members of the African Diaspora
• The longest cable car in the world is in Nigeria
• South Africa sold $1.8 billion worth of cars to the US last year, putting us ahead of Sweden and Italy as suppliers to the US market
• Africa is most affected by climate change but only produces 3% of global emissions
• Approximately half the population of Africa is under the age of 18
• Kenya is one of only five countries in the world that generates more than 15% of their electricity from geothermal sources
• Africa is the fastest growing telecoms market in the world
• Nigeria has a population the sum of the thirty one smallest countries in Africa
• Only 4% of Africa's hydropower potential is utilised currently
• Rwanda is ranked first by the Inter-Parliamentary Union in terms of the percentage of female politicians in its lower chamber, with 56.3 percent.
• The largest cement plant in the world is being built in Nigeria
• South Africa is the first, and to date only, country to build nuclear weapons and then voluntarily dismantle its entire nuclear weapons programme
• Almost 50% of all African immigrants in the United States hold a college diploma
• In the mid 1990s, there were more phones in New York City than the whole of Africa. But if the growth curve in mobile devices in Africa continues, it is likely to surpass the United States in number of mobile consumers
• The city of Pretoria, in South Africa, has the second largest number of embassies in the world after Washington, D.C.

A list of facts won't change people's image of Africa in one go, but it's all part of a far richer picture then a lot of people realise exists.